Cable Industry - Deutsche Banc Alex. Brown's Karim Zia Initiates Coverage of the Sector

'Entering the 'Golden Era''



Apr 17, 2001, 01:00 ET from Deutsche Banc Alex. Brown

    NEW YORK, April 17 /PRNewswire/ -- Deutsche Banc Alex. Brown analyst Karim
 Zia today launched coverage on seven cable stocks.  Shares of
 Comcast Corporation (Nasdaq:   CMCSK)($42.55), Cox Communications Inc.
 (NYSE:   COX)($43.75), Charter Communications Inc. (Nasdaq:   CHTR)($22.70), and
 Mediacom Communications Corporation (Nasdaq:   MCCC)($18.19) were started with a
 STRONG BUY investment rating.  Cablevision Systems Corporation
 (NYSE:   CVC)($67.25),
 Adelphia Communications Corporation (Nasdaq:   ADLAC)($37.34) and
 Insight Communications Company Inc. (Nasdaq:   ICCI)($27.72) were started with
 an investment rating of BUY on the shares.
     Zia recommends that investors overweight the cable sector based on his
 belief that the industry is at the early stages of extraordinary growth, which
 is being driven by the following trends:
 
      -- Accelerating revenue and operating cash flow growth from new products
         -- digital video, cable modems and cable telephony; and
 
      -- The emergence of free cash flow over the next two years as the
         industry's 10-year capital spending cycle comes to an end.
 
     "We expect the combination of accelerating EBITDA growth into the 12-14%
 range this year and higher thereafter with the deleveraging effects of free
 cash flow to lead to a reversal towards improving returns on invested capital
 and equity returns in the 20-25% per year range, even assuming no further
 multiple expansion," said Zia.  "This marks the entry point to an
 unprecedented phase in the history of the cable industry, which we've termed
 the 'Golden Era.'"
     Zia's positive investment opinion on the group is supported further by his
 view that the industry's outlook over the long-term is compelling.  "We now
 view the cable industry as on the cusp of turning the corner in three critical
 respects -- competitively, operationally and financially," he said.
 
     Deutsche Banc Alex. Brown represents the Investment Banking activities of
 Deutsche Banc Alex. Brown Inc. (US) and Deutsche Bank Securities Ltd.
 (Canada).  Deutsche Banc Alex. Brown and Deutsche Bank Securities Ltd. are
 subsidiaries of Deutsche Bank AG.  With assets of about Euro 940 billion and
 more than 98,000 employees, Deutsche Bank offers its clients unparalleled
 financial services throughout the world in over 60 countries.  It ranks among
 the leaders in asset management, capital markets, corporate finance, custody,
 cash management and private banking. Deutsche Bank is organized in two
 customer-oriented Groups: "Corporate and Investment Bank" (CIB) and "Private
 Clients and Asset Management" (PCAM).  The keys to the Bank's success remain
 constant: customer focus, the spirit of innovation, a broad range of product
 skills combined with technological power and financial strength delivered by
 highly skilled professionals.
     Deutsche Banc Alex. Brown Inc. maintains a net primary market in the
 common stock of Insight Communications Company Inc., Mediacom Communications
 Corporation, Cox Communications, Inc., Comcast Corporation, Charter
 Communications Inc., Cablevision Systems Corporation and Adelphia
 Communications Corporation.
     Within the past three years, Deutsche Banc Alex. Brown Inc. has managed or
 comanaged a public offering of Insight Communications Company Inc.
     Insight Communications Company Inc., Mediacom Communications Corporation,
 Cox Communications Inc., Comcast Corporation, Charter Communications Inc.,
 Cablevision Systems Corporation and Adelphia Communications Corporation are
 optionable stocks.  There are convertible issues outstanding on Cox
 Communications Inc., Comcast Corporation, Charter Communications Inc.,
 Cablevision Systems Corporation and Adelphia Communications Corporation.
 
     Information herein is believed to be reliable and has been obtained from
 sources believed to be reliable, but its accuracy and completeness cannot be
 guaranteed.  Opinions, estimates, and projections constitute our judgement and
 are subject to change without notice.  This publication is provided to you for
 information purposes only and is not intended as an offer or solicitation for
 the sale of any financial instrument.  Deutsche Banc Alex. Brown Inc. and its
 affiliates worldwide, may hold a position or act as market maker in the
 financial instruments of any issuer discussed herein or act as advisor or
 lender to such issuer.  Transactions should be executed through a Deutsche
 Bank entity in the client's home jurisdiction unless otherwise permitted by
 law.  Deutsche Banc Alex. Brown Inc. is a member of NYSE and NASD.
 
 

SOURCE Deutsche Banc Alex. Brown
    NEW YORK, April 17 /PRNewswire/ -- Deutsche Banc Alex. Brown analyst Karim
 Zia today launched coverage on seven cable stocks.  Shares of
 Comcast Corporation (Nasdaq:   CMCSK)($42.55), Cox Communications Inc.
 (NYSE:   COX)($43.75), Charter Communications Inc. (Nasdaq:   CHTR)($22.70), and
 Mediacom Communications Corporation (Nasdaq:   MCCC)($18.19) were started with a
 STRONG BUY investment rating.  Cablevision Systems Corporation
 (NYSE:   CVC)($67.25),
 Adelphia Communications Corporation (Nasdaq:   ADLAC)($37.34) and
 Insight Communications Company Inc. (Nasdaq:   ICCI)($27.72) were started with
 an investment rating of BUY on the shares.
     Zia recommends that investors overweight the cable sector based on his
 belief that the industry is at the early stages of extraordinary growth, which
 is being driven by the following trends:
 
      -- Accelerating revenue and operating cash flow growth from new products
         -- digital video, cable modems and cable telephony; and
 
      -- The emergence of free cash flow over the next two years as the
         industry's 10-year capital spending cycle comes to an end.
 
     "We expect the combination of accelerating EBITDA growth into the 12-14%
 range this year and higher thereafter with the deleveraging effects of free
 cash flow to lead to a reversal towards improving returns on invested capital
 and equity returns in the 20-25% per year range, even assuming no further
 multiple expansion," said Zia.  "This marks the entry point to an
 unprecedented phase in the history of the cable industry, which we've termed
 the 'Golden Era.'"
     Zia's positive investment opinion on the group is supported further by his
 view that the industry's outlook over the long-term is compelling.  "We now
 view the cable industry as on the cusp of turning the corner in three critical
 respects -- competitively, operationally and financially," he said.
 
     Deutsche Banc Alex. Brown represents the Investment Banking activities of
 Deutsche Banc Alex. Brown Inc. (US) and Deutsche Bank Securities Ltd.
 (Canada).  Deutsche Banc Alex. Brown and Deutsche Bank Securities Ltd. are
 subsidiaries of Deutsche Bank AG.  With assets of about Euro 940 billion and
 more than 98,000 employees, Deutsche Bank offers its clients unparalleled
 financial services throughout the world in over 60 countries.  It ranks among
 the leaders in asset management, capital markets, corporate finance, custody,
 cash management and private banking. Deutsche Bank is organized in two
 customer-oriented Groups: "Corporate and Investment Bank" (CIB) and "Private
 Clients and Asset Management" (PCAM).  The keys to the Bank's success remain
 constant: customer focus, the spirit of innovation, a broad range of product
 skills combined with technological power and financial strength delivered by
 highly skilled professionals.
     Deutsche Banc Alex. Brown Inc. maintains a net primary market in the
 common stock of Insight Communications Company Inc., Mediacom Communications
 Corporation, Cox Communications, Inc., Comcast Corporation, Charter
 Communications Inc., Cablevision Systems Corporation and Adelphia
 Communications Corporation.
     Within the past three years, Deutsche Banc Alex. Brown Inc. has managed or
 comanaged a public offering of Insight Communications Company Inc.
     Insight Communications Company Inc., Mediacom Communications Corporation,
 Cox Communications Inc., Comcast Corporation, Charter Communications Inc.,
 Cablevision Systems Corporation and Adelphia Communications Corporation are
 optionable stocks.  There are convertible issues outstanding on Cox
 Communications Inc., Comcast Corporation, Charter Communications Inc.,
 Cablevision Systems Corporation and Adelphia Communications Corporation.
 
     Information herein is believed to be reliable and has been obtained from
 sources believed to be reliable, but its accuracy and completeness cannot be
 guaranteed.  Opinions, estimates, and projections constitute our judgement and
 are subject to change without notice.  This publication is provided to you for
 information purposes only and is not intended as an offer or solicitation for
 the sale of any financial instrument.  Deutsche Banc Alex. Brown Inc. and its
 affiliates worldwide, may hold a position or act as market maker in the
 financial instruments of any issuer discussed herein or act as advisor or
 lender to such issuer.  Transactions should be executed through a Deutsche
 Bank entity in the client's home jurisdiction unless otherwise permitted by
 law.  Deutsche Banc Alex. Brown Inc. is a member of NYSE and NASD.
 
 SOURCE  Deutsche Banc Alex. Brown